2 [25 points] Use Northstar Corp.'s financial statements to compute the required ratios below, and indicate whether the change from yea to year is favourable or unfavourable. For your analysis, assume that all other things have remained constant. Apply your analysis in very general terms. All values should be accurate to at least two decimal places. Northstar Corp Income Statement For Years Ended December 31, 2014, 2013, and 2012 2014 2013 2012 Sales $1,402,800 $1,256,700 $1,186,900 Cost of goods sold 798,900 913,200 936,500 Gross profit from sales 603,900 343,500 250,400 Operating expenses 99,900 85,100 74,800 Income from operations 504.000 258.400 175,600 Interest expense 3.900 3.700 4,600 Income before taxes 500,100 254,700 171.000 Income taxes 86.500 37.800 17,800 Net income $413,600 $216.900 $153,200 IZNA 2017/2 Northstar Corp Balance Sheet December 31, 2014, 2013, and 2012 Assets 2014 2013 2012 Cash $39,400 $33,600 $37,600 Short-term investments 55,000 65,000 57,000 Accounts receivable, net 52,500 47,200 56,300 Merchandise inventory 64,100 65,800 69,900 Prepaid expenses 10,500 11,800 9,900 Notes receivable, due in 2017 11,500 12,000 11,500 Plant assets, net 132,000 151,000 163,000 Total assets $365,000 $386,400 $405,200 Liabilities and Equity Accounts payable $29,500 $34,400 $42,400 Salaries payable 9,900 10,000 10,600 Income taxes payable 3,500 4,350 4,750 Long-term note payable secured by mortgage on plant assets 29,000 25,000 26,000 Share capital, 150,000 shares 100,000 90,000 100,000 193,100 222,650 221,450 Total liabilities and equity $365,000 $386,400 $405,200 Retained earnings 2014 2013 Ratio Acid-test ratio Number of days of sales in inventory.. Debt ratio (%) Return on total assets (%). Equity ratio (%). Analysis (select one) (select one) (select one) (select one) (select one) Official Time: 0:17:40 SUBMIT AND M